CRCL - Circle Internet Group
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$124.63
DETAILS
HIGH:
$190.00
LOW:
$77.00
MEDIAN:
$120.50
CONSENSUS:
$124.63
UPSIDE:
10.18%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
-2.6%
6.0%
Key Value Driver
ROTCE (-2.6%) vs. cost of equity (6.0%)
Implied Market Multiple
11.4x
Plain-Language Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $124.63 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $69.23 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Return on equity (-2.6%) is below the minimum investors require (6.0%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $124.63 (from 12 analysts). Our estimate is 56% below the consensus -- consider that gap carefully.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly